RETURNS FROM WOOL

Hawke's Bay Herald-Tribune, Volume 81, Issue 82, 30 December 1937, Page 5

RETURNS FROM WOOL

The First Round of 1937 Season Ends STEADY IMPR0VEMENT The first round of wool saies in New Zealand for the 1937-38 season was eompleted at Dunedin on Tuesday, and buyers and orokers will be able to enjoy a three weeks' respite until the series is resumed with the Wellington fixture on January 10. So far six saies have been held, resulting in a return to the grower of about £1,750,000. Although this does not compare favourably with £3,280.000 reaiised at the same time last year^ it is above 'he cheque for the 1935-36 season. In sharp contrast with the sensational commencement of the previous season at the first Auckland sale, the fixture this year was ■duil in eomparison. There were no frantic Japanese buyers to hoist values to soaring levels, and the general tone was lifeless. Farmers had been warned that they nrust resign ihemselves to substantially lower prices, and their lack of confidence was reflected in the large proportion of withdrawals. Fairly heavy with the result that the clearance reached almost 60 per cent. Then came the Napier auetion, *and in spite of anticipated passings, a clear^ince of over 90 per cent. was effected. *The Japanese again attended merely as spectators, but the Continent, which had been the mainstay of the Auckland marlcet, operated even more freely. General satisfaction was felt that out of an offering of about 20.000 bales, only 1725 bales were passed at prices about ^d per lb. above Auckland. Confidence Increased, •

With a slight degree of confidence restored, growers approached the Wellington auetion with fewer misgivings. Wool had fallen, but they were resigned to it. They were pleasantly surprised, however, when values settled at another advance of.^d per lb. An unusually small offering of 19,500 bales was placed oefore the buyers, and. a clearance of 88 per cent. was made. Bidding was keen. and at times excited, with France and Germany showing the way. yigns of a welcome steadying in the market were evident at Christchurch, where out of an offering of 24,000 bales, 95 per cent. was sold under tlie hammer. Values agan rose by Jd to ld, per lb. The most encouraging features of this sale were the readiness of growers to meet the market, and the fact that although there were no unduly high prices, the average was excellent and every type of wool brought bidding. A f urther gain of £d per lb. was made at Timaru, and with praetically a total clearance. growers had almost forgotten the fears and uncertainties following the poot Auckland opening. At the end oi the way only a negligible proportion of the offering pf 14,589 bales remained unsold. Best Prices at Dunedin

Dunedin brought the highest prices this season, and passings were only about 5 per cent. Oontinental competition showed signs of easing, but .Bradford took its place and'bid keenly for the first time this season. The last sale befoxe Christmas proved an exceptionally good one, and confidence is being re-born in the industry. Since the opening at Auckland, prices have advanced by over 3£d per lb. ^ With regard to the saies in the next round, the 'outlook is much more hopeful at the present than at the opening of the season. Japan is reported to intend to re-commence buying in January. and although her position is obscure, she has recently been buying in Australia. The opinion was' expressed before the Dunedin sale that Bradford would be .f orced to fill her orders shortly and the activity shown at the last auetion would appear to bear this out. There has been a slight slackening in the demand from the Continent, but local mills are buying freely. Business rece'ssion in America is hindering United States buyers, who have held off so far. From present appearances, there i's every indication of a gontinuation of the improvement, and although growers will not receive the almost boom values of last season, they should at least be able to participate in a cheque equally as large as. if not greater than, in the 1935-36 season. The nex round of saies will probably be marked by fairly full catalogues, and the offering of 30,000 bales for the second Auckland sale on January 24 has already been filled for some time. - — i